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Pages:
1 page/≈275 words
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Level:
MLA
Subject:
Literature & Language
Type:
Article
Language:
English (U.S.)
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Topic:

Greece Buys Back Debt, Clearing Way for More Aid (Article Sample)

Instructions:
Please read any article of your interest, which is related to International Business and summarize the article (1/2 page) and discuss what you learned from reading the article (1/2 page).  Do not write more than 1 page. Use 12 font size, 1.5 spaced, 1-inch margins, and Times New Roman. The article should not be more than 6 months old. source..
Content:
Greece Buys Back Debt, Clearing Way for More Aid
With the bailout of various banks in the US and now the debt crisis in Greece dominating business news, there have been numerous concerns in America and throughout the world about the potential negative effects of the increasing debt burdens. Greek’s debt default would be potentially harmful to the financial system of the European Union bearing in mind that big economies like Spain Italy are also likely to default. In an article, in The New York Times Thomas Jr. reported that the Greek government agreed to buy discounted bonds in order to allow the country to get more financial help.
In essence, there was an arrangement to the effect that Greece would buy bonds worth 32 billion euros through a creditor financing deal of 10 billion euros. In doing so, Greece would be able to write off debts worth 20 billion euros additionally the country would get financial help and backing from the International Monetary Fund. Consequently, Greece would reduce there debt servicing costs and enhance the likelihood of getting financial help from creditors.
The bond buyback had a positive impact as finance ministers in Europe will hold further meetings to discuss how to avoid default in other countries. Equally, investors especially in the hedge fund markets are more optimistic that the Greek banking system is now less likely to collapse. Additionally, investor confidence is high now that Greece is unlikely to leave the Euro zone, to default on loans they also expect the value of the bonds to be higher in future. In a nutshe...
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